G20 to debate dollar's reserve status

G20 to debate dollar's reserve status

2011-10-14 09:30

Johannesburg - Finance ministers and central bankers from the G20 group of and advanced and emerging nations will debate the status of the dollar in the global financial system, a South African newspaper said on Friday.

Quoting Finance Minister Pravin Gordhan, the Business Day paper said that as well as considering Europe's debt crisis, the meeting would examine proposals to make the IMF's Special Drawing Rights more representative of the economic climate.

"The concern from many countries is that the dollar as a reserve currency creates its own challenges... particularly when you have a single monetary authority making decisions which have spillover effects on other economies," Gordhan said.

A proposal for a tax on financial transactions, including trade in stocks, bonds, derivatives and foreign exchange, was also on the agenda, the newspaper said.

The meeting, which starts in Paris on Friday, is likely to focus on the need for a solution to a deepening eurozone debt crisis that has fanned fears of a global recession.